Change in status - Partially paid LOA

[smm]

Has anyone encountered this question. The final regulations state that the commencement of an unpaid LOA is a change of status. This may be pushing the envelope, but what about an employee's spouse who goes to a partially paid medical LOA where the pay will be equal to 20% of the pre-LOA earnings. Equity dictates that this should be change in status, but the regulations rule. Any thoughts??

[Sandra Pearce]

I'm curious as to what change the employee is trying to make?

[smm]

Reduce her heal care FSA.

[Sandra Pearce]

I would not think that would meet the consistency rule. If the spouse is on a medical leave it would make logical sense that medical expenses are greater not less.

[smm]

Not necessarily - health expenses could be covered by insurance - anyhow, that is not the issue, under the regs, the fact that her spouse is going on a partialy paid LOA precludes any change - whether the change is consistent is completely irrelevant, if one is to read the regs. literally. That is my point. Are they supposed to be read literally? You are not reading them literally if you are concerned with consistency.

[Sandra Pearce]

The regulations don't actually address partially paid leaves so strict interpretations would mean that you would not allow any change. My reading and understanding of the final regulations and the final regulations incorporating 3/2001 corrections is that changes due to a change in status must meet the consistency rule. I would not allow the change the employee wants.

[smm]

I think we are in agreement. In this case, a change is not permitted because the regulations do not allow a change when there is a partially paid LOA. Therefore, consistency is completely irrelevant. However, shen a change is permitted by the regulations, consistency is a concern.

[Sandra Pearce]

Agreed.